The price of gold facilitates record high tone of risk; Will be stubborn

The price of gold refreshes a record level because the trade war in the USA-china is at the root of sheltered demand.
Positive risk hats are gained on precious metal among the slightly filled everyday RSI.
Fear of recession in the USA, factories to lower the Fed and Bear rates should support the couple Xau/USD.

The price of gold (Xau/USD) withdraws after touches the fresh record at the beginning on Monday and trades a bland negative bias around the area of USD 3220 in the first half of the European session. A positive tone around capital markets causes some profits around precious metal among slightly bought conditions on the daily table. Any significant repair decline still seems elusive due to acute escalation in US-chin trade tensions, which can still act as a wind in a sheltered place.

Meanwhile, investors now seem to be convinced that the Federal Reserve (FED) will soon resume its cycle of reduction of rates and lower loan costs at least three times this year due to the worries of the US economic slowdown based on tariffs. This keeps the depression of the American dollar (USD) near its lowest level from April 2022 and should contribute to limiting the minus of the inflexible gold price. Therefore, each subsequent slide can still be seen as the possibility of purchase and is more likely that it will remain narrow, justifying caution for the bears of traders.

Daily Digest Market Movers: Gold Price Bulls become careful because the improvement of risk moods undermines the sheltered demand

On Friday, China increased the US import tariffs to 125% in retaliation for the decision of the US President Donald Trump to raise the duties of Chinese goods to a total of 145%. This, in turn, increases market fears that the growing trade war between the two largest hosts in the world would weaken global economic growth and would raise the price of gold sheltered gold at the fresh peak of all time.
Meanwhile, the recent extraordinary increases in the American profitability of the treasury suggest that investors are shedting US government bonds among the weakened trust in the US economy. Adding to this, prospects for more aggressive federal reserve policy (FED), strengthened by the data of consumer inflation in the US published last week, maintain the depression of the American dollar and additionally bring benefits to the goods.
The statistics of work statistics in the US announced last Thursday that the consumer price rate (CPI) dropped by 0.1% in March, and the annual rate decreased rapidly to 2.4% from 2.8% in February. In addition, the basic CPI, which exists food and energy, increased only 0.1% compared to a month earlier and amounted to 2.8% within 12 months ended in March, which means its lowest degree in almost four years.
Traders now value 90 base points of FED rates by the end of 2025, which can additionally contribute to the flow of driving towards the inflexible yellow metal. In addition, investors expect that in the coming months of the tariffs they will boost inflation. This can additionally form the basis of the status of XAU/USD as a protection against rising prices and supporting perspectives for further close recognition.
This week, market participants will strictly examine the comments of influential FOMC members, including Fed Chairman Jerome Powell on Wednesday, in terms of guidelines on the future path of the rate. In addition, American monthly retail sales, also on Wednesday, will attract USD demand and provide a significant impulse to precious metal in the second half of the week.

Short -term prejudice of the price of gold seems heavily tilted in favor of bulls; Support in the amount of 3,1 168-3 167 USD contains the key

From a technical point of view, the daily indicator of relative strength (RSI) holds just above 70 characters and indicates some excessive conditions. Therefore, it will be reasonable to wait for tiny -term consolidation or modest withdrawal before traders start positioning a fresh leg. Meanwhile, any repair slide can be seen as an opportunity to buy near a round figure of $ 3,200, which in turn should lend a hand reduce the minus for Gold Price near the region 3 168-3 167 USD. The latter should act as a robust base and a key key point for tiny -term traders.

Frequently asked risk questions

In the world of financial jargon, two commonly used terms “risk” and “risk” relate to the level of risk that investors are willing to manage in the applied period. humble.

Usually, during “risk” periods of stock market markets will boost, most of the goods-except for gold-will gain value because they benefit from positive development. Currency of nations, which are robust exporters of goods, strengthen due to increased demand and cryptocurrencies. On the “Risk” market, bonds are growing-especially gigantic government bonds-the gold is shining and sheltered currencies, such as Japanese Jen, Swiss franc and American dollar.

Australian dollar (AUD), Canadian dollar (CAD), New Zealand dollar (NZD) and smaller FX, such as Rubel (Rub) and Rand Rand (ZAR), all tend to boost markets that are “risky”. This is due to the fact that the economies of these currencies are largely dependent on the export of goods for growth, and the goods tend to boost prices during risk periods. This is due to the fact that investors provide for a greater demand for raw materials in the future due to increased business activity.

The main currencies, which tend to grow during periods of “risk”, are the American dollar (USD), Japanese yen (JPy) and the Swiss franc (CHF). American dollar, because it is a global reserve currency, and because in the time of crisis investors they buy a US government debt, which is seen as sheltered, because the largest economy in the world will not guess. Jen, from increased demand for Japanese government bonds, because high percentage is kept by domestic investors who will rather lose them – even in crisis. French Swiss, because the strict Swiss banking regulations offer investors to boost capital protection.